Government must rationalise energy efficiency policies

In a new report, Shining a Light: Uncovering the business energy efficiency opportunity, the CBI argues that energy efficiency has been neglected for too long in the wider energy debate, despite making a material impact on UK growth in recent years. Government figures show the domestic industry alone is growing at 4% a year, worth £17.6bn in sales and supporting 136,000 jobs.

“Energy efficiency has sneaked under the radar in the UK’s energy debate and is making a material contribution to UK growth,” says Rhian Kelly, CBI Director for Business Environment policy. “But there is so much economic and environmental potential that remains unfulfilled.”

Kelly argues that businesses are held back from making efficiency improvements by the tangle of overly-bureaucratic policies that are too complex and costly, and urges Government to come up with a simpler approach.

“The Energy Efficiency Deployment Office will need to make its mark quickly if it is to spur higher spending on energy efficiency measures, and it could start by talking more to businesses on the ground.

“The Government could explore ways of using Business Rates more innovatively to reward those who plough money back into improving the energy performance of buildings.

“Meanwhile, businesses also need to step up to the challenge. We have seen progress from many companies but others need to make the leap, showing strong leadership at the top with robust structures put in place to manage energy use.”